On January 10, 2024, HPE said it had agreed to pay about US$14 billion (US$40 per share, 100.4 billion yuan) to acquire network equipment maker Juniper in an all-cash transaction.
HPE said in a statement that it expects to close the deal by the end of this year or early 2025.
Just a day before HPE announced the acquisition, Wall Street** was the first to report that the two companies were in deep talks about the acquisition.
HPE said the deal will be included in its adjusted earnings per share in the first year after closing. After years of competition, the acquisition will double HPE's existing networking business. According to the statement, if the acquisition is completed, Juniper CEO Rami Rahim will lead the combined division and report to HPE CEO Antonio Neri. In 2015, HP acquired Aruba Networks to deepen its network space. A few months later, HP split in two, forming HPE, which sells service and other data center equipment, and HP Inc., which makes PCs and printers）。HPE said the inclusion of Juniper Networks is expected to improve margins and accelerate growth. Juniper Networks was founded in 1996 and has been catching up with Cisco in the networking equipment market for many years. Revenue in 2022 increased 12% year-over-year, the fastest growth since 2010. In the most recent quarter, Juniper reported revenue of $1.4 billion and profit of $76 million, down 1% year-over-year. HPE's network business was the largest pretax gain** for the company, with revenue of $1.4 billion, up 41% year-over-year, and pretax earnings of 4.$0.1 billion. HPE said the merger of the two companies will result in savings of $4. per year for three years after the closing of the transaction$500 million in cost. On September 8, 2023, IDC's Worldwide Quarterly Ethernet Switch Tracker: Q2 report showed that HPE revenue increased by 788% with a market share of 71%；Juniper revenue increased by 35% year-over-year2% with a market share of 29%。
On December 7, 2023, IDC's "Worldwide WLAN Quarterly Tracker: Q3" showed that HPE Aruba Networking revenue plummeted by 25% year-over-year7% with a market share of 120%。Juniper's enterprise WLAN revenue grew 187% with a market share of 45%。
It is worth mentioning that in 2009, some analysts said that HP would acquire Juniper in a big way.
HPE had a market cap of 230 yesterday$400 million, currently $209$800 million:
Juniper had a market cap of 96 yesterday$3.6 billion, currently $11.7$400 million: